Speedy Hire last week unveiled a record 38.7-percent first-quarter revenue jump to £465.5 million (about U.S. $922 million). Pre-tax profit leapt 18.8 percent to £48.1 million. The record results were, to a large degree, the result of the company’s £115 million acquisition of Hewden Tools, which it acquired last August.
Speedy also said, in its stock exchange statement, that it maintained financial strength with strong operational cash flow, significant bank facility headroom and flexibility on capital expenditure.
Speedy is the U.K.’s largest tool and equipment rental company, with 488 branches in the U.K. and the Republic of Ireland. The company said its prospects for the year continued to be encouraging, with home construction accounting for only about 5 percent of its revenues.
“Two-thirds of our revenues derive from construction and related activities, with growth in infrastructure spending on energy, utilities, road and rail, hospitals, schools, social housing and the Olympics,” said Speedy chairman David Wallis. “The other third of our revenue comes from non-construction activities in the industrial sector, which is becoming increasingly important to us. Our share of these markets is expected to grow strongly.”
Speedy also announced the acquisition of the accommodation business of Carillion Asset Management, and said it reached a five-year strategic partnering agreement with Carillion plc to service its portable and modular units. Speedy is paying £11 million in cash and assuming £1.5 million of its leasing liabilities.